HomeMy WebLinkAbout06-11 Study; Gallatin County housing cheaper, by Alyssa Small.docxStudy: Gallatin County housing cheaper, but prices are still high
By ALYSSA SMALL, Chronicle Staff Writer | Posted: Wednesday, June 15, 2011 12:15 am
With housing prices going down in Montana, Bozeman real estate agents say it's time to buy, and researchers are agreeing with them.
"It's a buyer's market because buyers have a lot to choose from and have more leverage in negotiating a sale," said Rich Mayo, president of Gallatin County Association of Realtors.
The Montana Association of Realtors collaborated with the Bureau of Business and Economic research at the University of Montana to report on housing affordability in Gallatin County.
The MAR Tuesday released the study's results, which included statistics maintaining that the housing market is similar to the housing market in 2002.
"If you're trying to sell a house that you bought in 2002 or 2003, you'll be in decent shape," Mayo said. "But if you bought your house in 2005 or 2006, you might end up bringing money
to the table to sell the house."
According to the housing affordability report, 31 percent of Bozeman households in Gallatin County are spending more than 30 percent of their income on housing.
An index rating of 100 means the median-income homeowner of a community is able to afford a median-priced home without spending more than 30 percent of their total income on the house.
Gallatin County has been rated at 97, meaning homeowners are paying just more than the target average price for the community.
Despite the lower-than-desired affordability, costs are improving, Mayo said. Three years ago, Gallatin County's affordability index was at 75, signifying much higher housing costs.
"This isn't saying this is the highest or lowest it's going to get," Mayo said. "But it is getting better."
Because of these lower housing prices, 796 homes sold in Gallatin County in 2010, up from the 688 houses in 2009. Realtor Mike Basile, who said prices have been
fluctuating less in the past year, said this spike in housing sales has been encouraged by steady and low interest rates.
"Buyers are feeling more confident in the economy," said Basile, owner of Prudential Montana Real Estate in Bozeman. "Most price ranges are leveling off in their prices, and buyers are
noticing that."
The more affordable housing doesn't mean everyone should buy now, Mayo said. Instead, he recommends to people who are just starting to look into the housing market to first visit a mortgage
consultant to see how big of a loan they qualify for.
"One of the things that got us into this mess was people buying more than they could afford," Mayo said. "You should only look to spend 30 percent of your income on your housing. That's
just good sense."
Alyssa Small can be reached at 582-2635 or asmall@dailychronicle.com.
Link to the report:
http://bloximages.chicago2.vip.townnews.com/bozemandailychronicle.com/content/tncms/assets/editorial/2/18/440/21844090-970b-11e0-9d6b-001cc4c03286-revisions/4df83a8bb3e61.pdf.pdf